# Full standby

A [seller note](https://searchspheresource.com/glossary/seller-note) that receives no payments while the SBA loan runs.

It changes the seller-note negotiation materially, because a seller on full standby collects nothing for years and is betting on your success to ever be paid. That is also why the note can count toward your [equity injection](https://searchspheresource.com/glossary/equity-injection): the SBA treats money the seller cannot touch as if it were your own cash in the deal.

In numbers: On a $4M purchase needing a $400,000 injection, a $300,000 seller note on full standby pays the seller nothing, principal or interest, until the [7(a)](https://searchspheresource.com/glossary/sba-7a) is retired. It can satisfy at most 50% of the required injection, a half it shares with any other standby debt and minority investors' money. So it covers $200,000 of the injection, the buyer still brings $200,000 of cash, and the note's other $100,000 shrinks the loan.

Source: https://searchspheresource.com/glossary/full-standby
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

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